Initiative Measure 81

Initiative 81
1% for Renewables - Creation of a Small Scale Local Renewable Energy
Development Fund
BE IT ENACTED BY THE SEATTLE CITY COUNCIL:
The Seattle City Council finds that the use of small-scale renewable
energy resources generated from sources such as solar and wind power
would provide our community with, among others, the following
benefits:
* clean and reliable electricity;
* reduced reliance on electricity generated from fossil fuels;
* reduced reliance on hydroelectricity during dry summers; and
* the creation of jobs in local renewable energy products and
technologies industries.
The Seattle City Council recognizes that Washington State is home to
world-class leaders in the solar and solar-related industries.
However, the City Council finds that these companies are leaving the
state due to lack of support from the state government. By providing
financial incentives to citizens of Seattle who invest in renewable
energy products, Seattle would achieve the following:
* support for renewable energy companies and renewable energy-related
companies within Seattle;
* support for Washington's renewable energy industries; and
* diversification of Seattle's electricity sources, which would
provide greater energy security and reliability for Seattle.
Finding that the promotion of renewable energy in Seattle would
provide significant economic, environmental, and energy security
benefits to Seattle and Washington State generally, the Seattle City
Council proposes to offer investment cost recovery incentives through
this renewable energy ordinance to those residential electricity
customers of Seattle that invest in renewable energy systems.
The ordinance is as follows:
(1) A Small Scale Renewable Energy Fund (Fund) is created in the
custody of Seattle City Light (SSL).
(2) Until June 30, 2013, a 1% rate adjustment on all SSL residential
electric sales, except those households designated as low income,
shall be deposited into the fund created in section (1).
(3) Only the Director of SSL or the Director's assignee may authorize
expenditures from the fund.
(4) Any SSL residential electricity customer who becomes a Small
Scale Renewable Generator (Generator) by investing in and operating
either a small-scale (solar electric or wind) renewable energy system
(system) of up to 5 kilowatts (kW) that feeds into the SSL
electricity distribution system may receive annual investment cost
recovery incentive payments from SSL. The amount of the incentive
payment is calculated based on the amount of electricity in kilowatt-
hours (kWh) produced by the Generator's system in that year.
(5) The incentive application shall be on a form prepared by SSL and
shall include a statement issued by SSL that verifies the system's
electricity production.
(6) Other than a 5% administration fee charged by SSL for payment
processing costs, all funds deposited into the Fund will be
distributed annually to Generators. See (7) for limitations on fund
payments.
(7) The investment cost recovery payment shall be calculated as
follows:
a) After a 5% administration cost has been subtracted, 100% of the
remaining money collected and deposited in the Fund shall be paid to
participating Generators.
b) Generators shall receive payments based on the total amount of
electricity produced by their system during the applicable year. The
Generator will be responsible for purchasing from SSL a utility-grade
electric meter to measure the electricity produced by their system
from SSL.
c) Generators are limited to small (5 kW or smaller) solar, or wind
systems. These customer-owned and maintained systems must be located
within SSL's electricity distribution system.
d) Payment to individual Generators is equal to the total money
deposited in the Fund for the applicable year divided by the total
electricity produced by all the Generators during that year. The
maximum payment in any year shall be limited to $1.50 per kWh and is
set at the discretion of the Director of SSL. Any money remaining in
the Fund after the disbursement of payment to Generators shall remain
in the Fund and shall be added to the following year's Fund balance.
e) Generators are responsible for meeting all SSL electrical
interconnection requirements, complying with all State and Federal
safety laws and regulations, and obtaining all necessary permits and
licenses.
This ordinance expires July 1, 2014.